The Reserve Bank of India (RBI) on October 01, 2024, issued the Directions - Compounding of Contraventions under FEMA, 1999.
The provisions of section 15 of the Foreign Exchange Management Act, 1999, enable the compounding of contraventions and, empowers the Reserve Bank to compound any contravention as defined under section 13 of the FEMA, 1999, except the contraventions under section 3 (a) of FEMA, 1999, on an application made by the person committing such contravention. The Government of India vide Notification G.S.R. 566 (E). Dated September 12, 2024, has notified the Foreign Exchange (Compounding Proceedings) Rules, 2024 in supersession of the Foreign Exchange (Compounding Proceedings) Rules, 2000.
Accordingly, the Directions issued under earlier circulars have been reviewed and the list of earlier circulars superseded by this circular is given in Appendix.
Kindly find the Guidelines for compounding of contraventions under FEMA, 1999 attached to the document below.
[Notification No. RBI/FED/2024-25/78 A.P. (DIR Series) Circular.No.17/2024-25]
